Wednesday, October 26, 2011

ZTE Reports 26.5% Revenue Rise in 2011

ZTE Corporation reported operating revenue rose to RMB58.29 billion for the nine months ended September 30, 2011, an increase of 26.5 per cent year-on-year. Net profit attributable to parent company shareholders for the same period was RMB1.07 billion, a year-on-year decline of 21.5 per cent. The decrease is mainly attributable to increased financial expenses. Basic earnings per share for the period were RMB0.31.

Revenue from terminal sales increased 53.4 per cent year-on-year, driven mainly by growth in sales of 3G and CDMA terminals, and GSM handsets and data cards. Revenue attributed to telecommunications software systems, services and other products saw year-on-year growth of 28 per cent as a result of an increase in fixed terminals and services sales. The company also reported year-on-year growth of 15 per cent in carrier network revenue. This increase is attributed to increased sales of ZTE's wireline products, optical communications systems, domestic sales of GSM/UMTS system equipment and international sales of its CDMA system equipment.

ARM Discloses First Details of ARMv8 Architecture

ARM unveiled its next generation chip architecture embracing 64-bit processing and extended virtual addressing.

The ARMv8 architecture consists of two main execution states, AArch64 and AArch32. The AArch64 execution state introduces a new instruction set, A64 for 64-bit processing. The AArch32 state supports the existing ARM instruction set. The key features of the current ARMv7 architecture, including TrustZone, virtualization and NEON advanced SIMD, are maintained or extended in the ARMv8 architecture.

NETGEAR Continues Fast Growth - Up 28% YoY

NETGEAR reported net revenue for the third quarter ended October 2, 2011 of$301.8 million, as compared to $236.0 million for the third quarter ended October 3, 2010, and as compared to $291.2 million in the second quarter ended July 3, 2011. Net income, computed in accordance with GAAP, for the third quarter of 2011 was $26.7 million, or $0.70 per diluted share.

Patrick Lo, Chairman and Chief Executive Officer of NETGEAR commented, "We are extremely pleased with our Q3 2011 financial performance amid a challenging macroeconomic environment. Our Retail Business Unit revenue was up 18% sequentially, and up 10% over the prior year quarter, while the Commercial Business Unit revenue was up 18% sequentially, and up 21% over the prior year quarter. As expected, the Service Provider Business Unit revenue was down 21% sequentially, reflective of a one-time order from a major service provider in the previous quarter. On a year-over-year basis, service provider revenue was up 85%.:

Motorola Mobility Posts Q3 Financials, Xoom Tablet Sales Fall Flat

Motorola Mobility reported net revenues of $3.3 billion in the third quarter of 2011, up 11 percent from the third quarter of 2010. The GAAP net loss in the third quarter of 2011 was $32 million, or $0.11 per share, compared to a net loss of $34 million, or $0.12 per share, in the third quarter of 2010.

Mobile Devices net revenues in the third quarter were $2.4 billion, up 20 percent compared with the year-ago quarter. The GAAP operating loss was $41 million compared to an operating loss of $43 million in the year-ago quarter.

The company confirmed the shipment of 100,000 Xoom Android tablets in Q3, down significantly from earlier quarters.

Home segment net revenues in the third quarter were $825 million, down 10 percent compared with the year-ago quarter. GAAP operating earnings were $54 million, compared to $49 million in the year-ago quarter.

The company believes the acquisition by Google to be on track for closing later this year or early next year. Motorola Mobility will hold a special meeting of stockholders on Nov. 17, 2011, to seek stockholder approval of the proposed merger with Google.
  • Apple shipped over 11 million iPad2s in Q3.

PMC-Sierra Posts Q3 Revenue of $173 Million, up 7% YoY

PMC-Sierra reported Q3 revenue of $173.3 million, a sequential increase of 1% compared with $171.0 million in the second quarter of 2011, and 7% higher than net revenues of $162.3 million in the third quarter of 2010. GAAP net income was $47.3 million, or $0.20 per diluted share, compared with GAAP net income in the second quarter of 2011 of $16.7 million, or $0.07 per diluted share.

“Our third quarter results were solid given the difficult economic environment,�? said Greg Lang, president and chief executive officer of PMC. “While macro concerns impact our near-term outlook, PMC is well-positioned to deliver the infrastructure required to support explosive traffic growth on storage, mobile and optical networks.�?

AppliedMicro Positions 64-bit ARM "X-Gene" for Next Gen Infrastructure

AppliedMicro introduced its "X-Gene" 64-bit, multi-core ARM architecture for next-generation infrastructure, including cloud computing, wireless infrastructure, enterprise networking, storage and security applications.

The new X-Gene multi-core processors leverage high-performance ARMv8 compliant cores operating at up to 3.0 GHz and are designed for full CPU and I/O virtualization in next generation of cloud computing.

AppliedMicro said its server-on-a-chip will combine multiple ARMv8 compliant 64-bit cores and a high-performance terabit coherent fabric with on-chip 10-Gigabit LAN, storage and WAN physical layer IP. It will also feature a 100-Gigabit per second inter socket communications interface to extend coherency to multi-chip configurations. The SoC design uses server-class dynamic power management during the idle state to achieve an unprecedented level of standby power of less than 300mW. The company expects first samples in the second half of 2012.

AppliedMicro also confirmed TSMC as its fab partner.

"The current growth trajectory of data centers, driven by the viral explosion of social media and cloud computing applications, will continue to accelerate," said Dr. Paramesh Gopi, President and CEO of AppliedMicro. "In offering the world's first 64-bit ARM architecture processor, we harmonize the network with cloud computing and environmental responsibility. Our next-generation of multicore SoCs will bring in a new era of energy efficient performance that doesn't break the bank on a limited power supply. In doing so, AppliedMicro becomes a more complete cloud computing technology provider for one of the hottest growth drivers in the industry."

Cool Demo: Cavium's Small Cell Base Station

Cavium's recently introduced small cell “Base Station on a chip�? is being used to deliver eight simultaneous connections, including streaming of five HD videos, at the maximum possible data throughput.
This demonstration platform, which was shown at the 4G World show last week in Chicago, consists of a commercially available 4G/LTE client, an OCTEON Fusion Technology based eNodeB base station, Cavium's FusionStack eNodeB software, and a commercial 4G/LTE EPC (Evolved Packet Core) solution.
The demo shows how an LTE base station can be shrunk to the size of an iPad.

  • In October, Cavium introduced its small cell "Base Station-on-a-chip" family for LTE and 3G networks.

    The new OCTEON Fusion series, which builds on the company's established L2-L7 presence in existing wireless infrastructure, combines Octeon's MIPS64 based multi-core architecture with purpose-built Baseband DSP cores, extensive LTE/3G hardware accelerators and digital front end (DFE) functionality into a single chip. This enables very small footprint designs, including picocell and micro base stations, with a minimal bill-of-materials (BOM) and power envelopes.

    Significantly, the new OCTEON Fusion can be used for small cell LTE base stations scaling from 32 users to 300+ users and up to dual 20MHz carriers, making it a more powerful small cell base station solution than its competitors.

Motorola Solutions Reports Strong Q3, Raises Outlook

Motorola Solutions reported Q3 sales of $2.1 billion, up 10 percent from the third quarter of 2010 and driven by solid demand in all regions across both its Government and Enterprise segments. GAAP operating earnings in the third quarter of 2011 were $253 million or 12 percent of sales, compared to $211 million or 11 percent of sales in the third quarter of 2010. GAAP earnings per share from continuing operations were $0.45, compared to a GAAP loss of $0.04 in the third quarter of 2010.

“Our customers continue to invest in solutions that increase revenues and improve operating efficiency,�? said Greg Brown, chairman and CEO of Motorola Solutions. “In addition to our robust growth this quarter, we returned significant capital to shareholders. We repurchased $744 million of stock, initiated our dividend and generated very strong operating cash flow.�?

Government segment sales were $1.4 billion, up 9 percent from the year-ago quarter. Enterprise segment sales were $726 million, up 13 percent from the year-ago quarter.

Motorola Solutions also raised its expected full-year revenue outlook to approximately 7 percent growth with operating earnings of approximately 16.5 percent of sales. Fourth-quarter sales are expected to grow between 2 and 3 percent compared with the fourth quarter of 2010 and approximately 7 percent compared with the third quarter of 2011.

FCC Transforms USF/ICC Into "Connect America Fund"

The FCC voted unanimously to approve significant reforms to the Universal Service fund and Inter Carrier Compensation (ICC), while creating a new "Connect America Fund" aimed at extending broadband to rural areas of the country.

FCC Chairman Julius Genachowski described the vote as " a once-in-a-generation overhaul of universal service, keeping faith with the nation's long commitment to connecting all Americans to communications services."

The FCC estimates that approximately 500,000 jobs will be created over the next six years by expanding high-speed Internet access to over 7 million Americans living in rural areas. For the first time, the FCC also made mobile broadband into an independent universal service objective.

Some highlights of the reforms:

Puts the country on the path to universal broadband within a decade.

The Mobility Fund will expand advanced mobile broadband access to tens of thousands of road miles, including dedicated support for Tribal areas.

Intercarrier compensation reform aims to eliminate hidden costs in consumer bills, providing economic benefits to long distance and wireless consumers across the nation of $2.2 billion annually in the form of lower prices, better value for the money, or both.

The FCC estimates consumers may pay, on average, an additional 10 to 15 cents a month on their bills. No additional charges can be imposed on consumer phone bills that are at or above $30 a month (inclusive of most fees consumers pay on their bills), nor can such charges be imposed on low income consumers served by the FCC's Lifeline program.

The budget for the Connect America Fund is set at $4.5 billion per year. Market-based mechanisms, including
competitive bidding, will be used to distribute money more efficiently.

Intercarrier Compensation Reform includes new rules to address "phantom traffic," i.e., calls for which identifying information is missing or masked in ways that frustrate intercarrier billing. Specifically, the new rules require telecommunications carriers and providers of interconnected VoIP service to include the calling party's telephone number in all call signaling, and require intermediate carriers to pass this signaling information.

The initial ICC reforms focus on reducing terminating switched access rates, which are the principal source of arbitrage problems today. The approach seeks to promote migration to all-IP networks while minimizing the burden on consumers and staying within the universal service budget.
unaltered, to the next provider in a call path.

Sony to Buyout Ericsson's Share in Sony Ericsson

Sony will pay EUR 1.05 billion in cash to acquire Ericsson's 50 percent stake in Sony Ericsson Mobile Communications AB. The mobile handset vendor will become a wholly-owned subsidiary of Sony when the deal closes in January 2012.

Sony said it plans to rapidly integrate smartphones into its broad array of network-connected consumer electronics devices - including tablets, televisions and personal computers.

  • In 2001, Ericsson and Sony merged their mobile phone businesses worldwide and they have run it as a 50/50 venture ever since.

PCTEL Works with LightSquared on GPS Interference Solution

LightSquared is working with PCTEL, a developer of antennas, to resolve concerns over high precision GPS receivers. Specifically, PCTEL has developed an antenna that will allow existing high precision users to retrofit their GPS devices to make them compatible with LightSquared's network. This antenna provides high precision GPS users with another in a series of solutions to make their equipment LightSquared-compatible. The design will be tested by Alcatel-Lucent's Bell Labs.

LightSquared noted that PCTEL is the third company to collaborate with it on a solution to high-precision GPS interference issues.

Earlier this month, GPS device maker Javad GNSS announced the design of antennas that can be retrofitted onto existing devices and the development of new receivers that are compatible with LightSquared's network. Additionally, Partron America has created a filtering component that costs only $6.